When you have reportable fringe benefits

If the total taxable value of certain fringe benefits provided to you or your associate (for example, a relative) exceeds $2,000 in an FBT year (1 April to 31 March), the grossed-up taxable value of those benefits are recorded by your employer on your payment summary for the corresponding income year (1 July to 30 June). This value is known as your reportable fringe benefits amount.

The total amount of reportable fringe benefits you receive from all your employers for a year is called your reportable fringe benefits total.

If you finish employment between 1 April and 30 June

If you finish your employment between 1 April and 30 June, your employer may have provided you with reportable fringe benefits. Details of any reportable benefits exceeding a total of $2,000 that your employer provided you with from 1 April of that year must be shown on your payment summary for the income tax year ended 30 June in the following year. This is even though you will not have received any salary or wages from that employer in the following income tax year.

Your employer has until 14 July following the end of the income year covered by the payment summary to provide you with a payment summary.

Example: Finishing employment

Joan finishes employment with her employer on 15 May 2017. From 1 April 2017 to 15 May 2017, Joan receives fringe benefits from that employer with a reportable value of $4,000.

Joan's employer must report this amount on Joan's payment summary for the income year ended 30 June 2018. Joan's employer has until 14 July 2018 to issue the payment summary.

End of example

Benefits reported on your payment summary

Some fringe benefits do not have to be reported on your payment summary. These benefits are called 'excluded benefits' and can include:

car parking fringe benefits

remote area housing assistance, home ownership schemes, and repurchase schemes

if you live in a remote area, costs of occasional travel to a major Australian population centre

benefits you receive to ensure your security and personal safety because of your job

emergency or other essential health care you receive as an Australian citizen or permanent resident while you are working outside Australia and you cannot claim a Medicare benefit

certain benefits provided to you if you are a

defence force member

police officer

car benefits coming from your private use of pooled or shared cars.

Meal entertainment and entertainment facility leasing benefits provided to you from 1 April 2016 under a salary sacrifice arrangement will now be reported on your payment summary.

How your reportable fringe benefits amount is calculated

Your employer calculates your reportable fringe benefits amount by multiplying the taxable value of the fringe benefits (that are reportable) provided to you or your associate by the lower gross-up rate. The lower gross up rate for the FBT year ending 31 March 2018 is 1.8868. For example, if the taxable value of your fringe benefits is $2,000.01, your reportable fringe benefit amount is $3,773.

The reportable fringe benefit amount reflects the gross salary that you would have to earn to purchase the benefit from your after tax income.

Example: working out amounts for payment summaries

Between 1 April 2017 and 31 March 2018 (the 2018 FBT year), Tim's employer provided him with a work car. The taxable value of Tim's car fringe benefits is $2,500. Tim and his partner also stay in company coastal accommodation several times a year, with a taxable value of $800.

The taxable value of Tim's fringe benefits total $3,300. The grossed-up taxable value of these benefits will appear on his payment summary for the income year ending 30 June 2018.

The rate of FBT for the year ended 31 March 2018 is 47%, so the grossed-up amount reported on Tim's payment summary is $6,226. This is calculated as follows:

working out your entitlement to claim low income supplement or low income family supplement

determining whether you can offset your business loss against other income.

Recent changes

From 1 January 2017, all of the RFBA is used in assessing your eligibility for certain government benefits and concessions. However, for employees of certain non-profit organisations the RFBA continues to be adjusted down in assessing your eligibility.

From 1 July 2017, there are changes to the treatment of fringe benefits under the income tests for net medical expenses tax offset, dependent (invalid and invalid carer) tax offset, zone and overseas forces tax offset, seniors and pensioners tax offset and the low income superannuation tax offset. These changes also impact the calculation of your child's adjusted taxable income to determine whether your child is considered a dependant for Medicare levy purposes. The RFBA will be used when we calculate these tax offsets. However, for employees of certain non-profit organisations, the RFBA continues to be adjusted down to calculate these tax offsets.

How to reduce your reportable fringe benefits amount

making employee contributions out of your after-tax income towards the cost of the benefits.

What are employee contributions?

Employee contributions are a payment you make towards the cost of your employer providing a fringe benefit. Generally, this is when you make a cash payment to your employer or the person who provided the benefit.

For example, you can make an employee contribution towards a car fringe benefit by paying a third party for some of the operating costs (such as fuel) that your employer does not reimburse.

Information to help employees understand the reportable fringe benefits amount included on their payment summary.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.